Newsagents in two different large capital city shopping centres received revised offers from their respective landlords last week to entice them to stay in the centre.
In each case their lease was ending and the newsagents had advised they would not continue because of the high occupancy cost.
\For months the respective landlords said there was no room to move and then, at the last minute, they blocked and offered a substantially discounted offer.
What makes these cases different is that the discounted offer is a discount on base rent, not some manipulated pitch that enables the landlord to claim higher value for the space than what is actually paid.
If what I’m told Wass pitched last week is a trend, it would be good news for newsagents in shopping centres.
This is good news Mark. Are you able to confirm the rental percentage reduction in each case?
They are being very selctive on a case by case situation.
I wouldnt be surprised by this approach by some landlords. They are taking a long term view and locking in good tenants. Thats a win for the owner and tenant.
I agree Anthony. I think a challenge will be the speed of the change. Based on what I see in shopping centres in Victoria, they will need to act in the next 2 or 3 months.